Public Policy #1

The Policy Process

Policy • Policy – any broad course of govt

action on anything

• EX: Rewriting gun policy to include an increased waiting period for most handguns

• Who would support? Oppose?• What role would the media play?• How might the public respond?

Policy Process

1. Identify problem• What is the number one problem

facing America today?

It’s the economy, stupidstupid!!• Currently we are in an economic

downturn. Many politicians are debating the best way to solve this problem. If you were in Congress or the president, what would you suggest we do?

–Cut taxes on individuals

–Spend more

–Cut taxes on businesses

–Ensure that no one loses a home due to foreclosure

–Regulate banks better so that they cannot give out bad loans

–Other

2. Agenda Setting: what’s important?• Issue Attention Cycle• Who does this?• IG, PP, Media

3. Formulate Policy• Who does this?• Cong, Pres • Easier to make small changes than

large policy ones

Policy Making Process Continued….

4. Implement Policy• Who does this?

• Bureaucracy

5. Evaluate Policy

**Obstacles to policy making: – Political, Financial, etc.

What is the problem with public education?

• List problems

• Which ones get attention from media, politicians, and/or interest groups?

• Who can / should solve these problems?

• Why don’t these problems get fixed?

• Are any problems “unsolvable”?

Public Policy #2

Economic Policy

Economic Policy – relationship between government & economy

• Laissez-faire / Free Market / Capitalism: Owners make all economic decisions – what to produce, how much, etc.

• “Invisible hand” of competition regulates the economy (Adam Smith)

–Businesses with a good product at low prices will stay in business

•Wal-mart

• Prices (including labor) are determined by supply and demand –What are people willing to

pay for a particular product? • Bottle of Pepsi VS. diamond ring

• Tennis shoes VS. Air Jordan's

• Janitor's wages VS. doctor’s wages

Supply & Demand

• If shortage (high demand / low supply) – price goes up –Concert tickets

• If surplus (low demand / high supply) – price goes down–Beanie babies

• No laws regulating business:

–No min wage

–No max hours

–No health / safety protections

Controlled Economy Communism

• The govt makes all the economic decisions including what to produce, prices, wages, etc

–Not determined by what sells, but what is best according to the gov

• Individuals are taxed heavily and gov uses money as it sees fit

How this looks…

• Soviet Union used resources on building military not consumer products – cars or food

Mixed Market• A free market w/some government

regulation –EX: wages are determined by

owners but there is a minimum wage all owners must pay

–EX: products are determined by owners but must meet safety / health requirements

• Current US economic system

How Gov Regulates Economy

•Subsidy: any government aid given to encourage something–Grant / loan

• College –Tax break

• Govt Regulation:

–Quality Reg: FDA

Gov Regulation

•Production Reg: Environmental laws

–Ex: Clean Air Act: mandated that air is clean, EPA can fine if not meeting minimum standards

•Labor Reg: Max hours, minimum wage, safety, etc.

Compare & Contrast Answer the following for Controlled

Market, Free Market, and Mixed Market Economies

• Who profits from this system?

• Who gets hurt in this system?

• What is one advantage of this system?

• What is one disadvantage of this system?